Cities are expected to become a strong engine of economic growth in India
The Asian Development Bank (ADB) on 17 December 2021 has signed a US$350 million policy-based loan to improve access to urban services in India by accelerating policy actions and reforms to enhance service delivery and promote performance-based central fiscal transfers to urban local bodies (ULBs).
“The program builds upon ADB’s long engagement with India in the urban sector with continued support to the central and state governments to undertake reforms to ensure universal and improved access to basic urban services such as water supply, sanitation, and affordable rental housing, especially for the poor most affected by the COVID-19 pandemic,” said Takeo Konishi, Country Director of ADB’s India Resident Mission, after signing the the agreement for the Sustainable Urban Development and Service Delivery Program.
The first subprogram will establish essential policies and guidelines for urban reforms at the national level followed by specific reform actions and program proposals at the state and ULB-level under second subprogram.
The program is aligned with the Government’s national flagship programs that promote cities as engines of economic growth by improving the quality of urban life through the creation of high-quality urban infrastructure, assured service provisions, and efficient governance, elaborated Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, signed for Government.
The program will also promote performance-based central fiscal transfers to ULBs on the recommendations of the 15th Finance Commission by linking fiscal transfers to improved urban service delivery. This will help boost local financial resource generation in ULBs resulting in improved urban governance, said the Finance Ministry in a release on 20 Dec 2021.
ADB said it will provide knowledge and advisory support to the Ministry of Housing and Urban Affairs in program implementation, including monitoring and evaluation. It will also support urban local bodies particularly in select low-income states to implement policy reforms, prepare investment plans, and provide recommendations on cross-cutting issues like climate change, environmental and social safeguards assessment, and gender equality and social inclusion.
With increasing urbanization, cities are expected to become a strong engine of growth for India—generating economic activity and outputs, creating jobs for a significant volume of workers, improving competitiveness and urban livability, and protecting the environment, said the release. fiinews.com
